KKR Acquires Envision Healthcare in a $5.57B plus Debt Deal

Envision Healthcare Corp. will be purchased by private equity firm KKR & Co. for $5.57 billion plus debt after a lengthy sales process. The total amount along with debt incurred by Envision Health puts the deal at $9.9 billion.

The healthcare company in a statement on Monday said that along with the debt, the all-cash purchase will value Envision at $9.9 billion.

Private equity firm KKR & Co. will buy Envision Healthcare Corp. for $5.57 billion plus debt, after a lengthy sale process by the hospital staffing and surgical center company. Envision said the $46-a-share price represents a 32% premium to its stock price in November, when it announced it was reviewing strategic alternatives.

Months after the review commenced, the physician services provider was said to draw a parade of interested parties looking at all or part of the company. They included strategic buyers such as UnitedHealth Group, as well as a private equity consortium comprised of Hellman & Friedman, Onex Corp., and Clayton Dubilier & Rice, and one led by Carlyle Group.

Envision said the KKR deal values Envision at 10.9 times its adjusted earnings before interest, taxes, depreciation, and amortization for the trailing 12 months.